UPDATE 1-Canadian oil company to liquidate due to crisis in Yemen

CALGARY, Alberta, April 9 (Reuters) - Canadian oil and gas
producer Calvalley Petroleum Inc said on Thursday it
will liquidate and restructure due to the political crisis in
Yemen, where it has almost all of its operations.

The Calgary-based junior has a 50 percent working interest
in a block in Yemen's Sayun-Masila Basin, producing 3,700
barrels per day gross, but was forced to shut down production on
Tuesday as conflict in the Middle Eastern country escalated.

The block is owned by the Yemeni government.

Saudi Arabia and Arab allies have launched air strikes
against the Iran-allied Houthi movement in Yemen, which has
taken most of the country and forced President Abd-Rabbu Mansour
Hadi to flee to Riyadh.

The company said its efforts to diversify out of Yemen or
sell itself or its assets had not resulted in "compelling"
opportunities.

Under the restructuring, shareholders will have options to
buy shares in the company's unlisted unit, Calvalley Energy Ltd.
Those who decide not to will receive cash. Calvalley's financial
chief said both options are better than trying to sell one's
shares.

"With the current events in Yemen and lack of other
alternatives we think this is the best position for shareholders
at the moment," said Gerry Elms, Calvalley chief financial
officer.
Continued...